Hormel Foods Maintains 60-Year Dividend Streak, But Growth Has Slowed
Hormel Foods (NYSE:HRL) has confirmed its 60th consecutive year of dividend increases. However, the most recent raise was only 1%, barely keeping up with inflation and signaling a slowdown in growth compared to previous years. Despite this, Hormel's payout remains well-covered by earnings and cash flow, as evidenced by adjusted EPS guidance for fiscal 2026 ranging from $1.45 to $1.51 per share, which exceeds the current annualized dividend of $1.17. The company’s stock has underperformed over recent years, falling 41% in five years and closing at $20.83 on September 18, 2026, with a trailing yield of approximately 5.62%. While the dividend streak is impressive from an income perspective, it offers little real growth for investors facing rising inflation costs. Hormel's approach mirrors broader trends in the packaged food sector, where companies like McCormick (MKC) have also adopted smaller annual raises. Meanwhile, Kraft Heinz (KHC) has taken a different route by rebasing its payout rather than maintaining steady increases.
Topics: dividends inflation stock performance